Millions of potenial Australian crypto investors are “sitting on the sidelines” until regulations around the market are clearer, says the head of a local crypto exchange.
Jason Titman, the CEO of Swyftx, told Cointelegraph that his firm predicts between two to six million Australians will enter crypto when “the dust has settled on regulation.”
A Swyftx survey found nearly a third of respondents would be more likely to buy crypto if it were regulated, while 41% said they didn’t trust crypto without regulation.
Of the survey’s 2,229 adult respondents, 20% had never owned crypto, while 43% of those surveyed said they don’t know enough about how crypto works.
“We have a wall of investors right now sitting on the sidelines waiting for the security of consumer protections,” Titman said.
“When national markets are regulated you will get more investment in the sector, more utility, more security and more interest.”
Swyftx estimated from its survey that there are 3.9 million Australians who own crypto, while a further 1.3 million are considering entering the market in the next 12 months.
Swyftx’s survey also found crypto usage in Australia has fallen slightly despite Bitcoin rallying to an all-time high of $73,750 in March of 2024.
The overall number of people who own digital assets also dropped from 23% to 20, but one age bracket, Gen Z, saw an 11% increase in usage.
Most investors also reported making a profit over the last 12 months, with roughly 82% claiming to have made gains. Swyftx estimates the average profit was $9,600.
Adoption “sideways” until laws in place
Titman expects crypto adoption will “track sideways” until the country moves on regulations.
“The reality is that there are a finite number of investors who are willing to take on the risk of entering an unregulated market,” Titman said. “At some point, without regulation, adoption is going to slow.”
“The evidence coming out of Australia strongly supports the idea that the international crypto economy will exponentially grow when it’s regulated. We think a regulated industry is almost certainly how we hit one billion global crypto owners.”
Currently, cryptocurrencies are legal in Australia and are subject to laws treating them as property. Those who cash out profits on their investments must disclose the transaction to tax authorities.
The government has pledged to introduce exchange regulations and custody, but there are still no firm rules.
